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Take our poll: Does lifestyle trump taxes in getting entrepreneurs to Reno?

Alisha Trevino of Reno accepts a cup of hot chocolate at the Hub Coffee Shop during an art walk in Midtown Reno. With her are friends Sterling Clydesdale, left, and Hayley Jane, both of Reno. (RGJ file photo)

An item in the Atlantic Cities blog points to a new report from Endeavor Insight that examines why entrepreneurs start their businesses in certain cities — and why they stay.

The takeaway from the Endeavor report is this: Business climate takes a back seat to lifestyle.

Here's a key takeout from the report summary:

The research uncovered a few key lessons on what makes certain cities more attractive than others. While a strong quality of life, talent pool and customer base were the most cited considerations, there was also a surprising lack of mention of business-friendly regulation as a factor. City leaders who dedicate resources to fostering these identifiable characteristics have the highest potential of drawing the types of innovative entrepreneurs, companies and jobs that can transform their local economies.

This is putting the horse in front of the cart and association fallacy. Highly educated, highly paid tech professionals desire upscale amenities/lifestyle, and if it doesn't exist, they create it. Cool coffee shops, natural food stores, boutiques, cocktail lounges follow them, because they have the demand and money not vice versa. There are many places in the world that have upscale amenities/lifestyle like Dubai, Singapore, Hong Kong, Buenos Aires, but they don't attract high tech entrepreneurs because of regulations and high taxes. If we added a hundred upscale restaurants, cocktail lounges, natural food stores, etc to Reno and ADDED business taxes, I guarantee you, high tech companies would LEAVE Reno not come here. Read the book "New Geography of Jobs" it will explain it all. High tech entrepreneurs are attracted to tech hubs with existing high tech infrastructure and financial and regulatory incentives NOT lifestyle.

Entrepreneurs with capital-intensive business models will be more focused on regulations and infrastructure. Those with "lighter" models focus more on workforce and lifestyle. Only larger businesses or those with very high profit expectations make taxes a priority. Lifestyle and a culture that draws likeminded people are usually more important -- though intensive regulation or high taxes can certainly be a barrier, or even drive out businesses that would otherwise stay. In other words, low taxes are rarely a draw, but high taxes are a repellent, whereas an attractive lifestyle is an active draw.